Federated Funds
Fidelity Bond Filing
Contents of Submission:
1)(a) Copy of the Financial Institution Investment Company Asset
Protection Bond ("Bond") received on October 6, 2006 for filing as
required by Rule 17g-1(g)(B)(i);*
(b) Copy of the National Union Fire Insurance Company of Pittsburgh,
PA Follow Form Bond ("Bond") received on November 16, 2006 for
filing as required by Rule 17g-1(g)(B)(i);
2) Copy of the amended resolution (which replaces the resolution
filed on October 16, 2006) of a majority of the disinterested
directors approving the amount, type, form and coverage of the Bond,
and the portion of the premium to be paid by such company as required
by Rule 17g-1(g)(B)(ii);
3) Copy of a statement showing the amount of the single insured bond
which the investment company would have provided and maintained had
it not been named as an insured under a joint insured bond;*
4) As required by Rule 17g-1(g)(B)(iv), the period for which
premiums have been paid is October 1, 2006 to October 1, 2007; and
5) Copy of the agreement and amendments thereto between the
Investment company and all of the other named insureds as required by
Rule 17g-1(g)(B)(v).*
* Incorporated by reference to the Fidelity Bond filing submitted on
October 16, 2006.
AMERICAN INTERNATIONAL COMPANIES(R)
National Union Fire Insurance Company of Pittsburgh, Pa.
A Capital Stock Company
175 Water Street
New York, New York 10038
Follow Form Bond
DECLARATIONS
Bond Number: 673-83-04
Item 1. Named Insured: FEDERATED INVESTORS INC
Address: 1001 LIBERTY AVENUE, SUITE 2100
PITTSBURGH, PA 15222-3727
Item 2. Bond Period: From October 1, 2006 to October 1, 2007 at
12:01 A.M. Standard Time at the Address of the Named
Insured shown above
Item 3. Limit of Liability: $10,000,000 Excess of: $15,000,000
in the Aggregate of: none
Item 4. SCHEDULE OF UNDERLYING EXCESS POLICIES (HEREIN COLLECTIVELY
THE "UNDERLYING PROGRAM"):
Primary Policy ("herein "Primary Policy)
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Policy No. Single Loss Aggregate Deductible Policy Period
Limit Limit
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81948005 $15,000,000 none $250,000 10/01/2006 to
Chubb Group of 10/01/2007
Insurance Companies
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Underlying Excess Policy(ies)
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Policy No. Single Loss Aggregate Deductible Policy Period
Limit Limit
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
N/A
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Item 5. Riders Attached: #1, #2, #3, #4, #5
/s/ John Q. Doyle
---------------------------
Authorized Representative
NATIONAL UNION FIRE INSURANCE COMPANY
OF PITTSBURGH, PA.
A Capital Stock Company
175 Water Street
New York, New York 10038
Follow Form Bond
Various provisions in this bond restrict coverage. Read the entire bond
carefully to determine rights, duties and what is and is not covered.
Throughout this bond, the words "you" and "your" refer to the Named Insured
as shown in Item 1 of the Declarations. The words "we", "us" and "our" refer
to the Company providing this insurance.
In consideration of the payment of the premium and in reliance upon the
statements in the Declarations and in the Application, we agree with you to
provide coverage as follows:
INSURING AGREEMENT
I. Coverage
A. We will pay on your behalf the Ultimate Net toss in excess of the
Underlying Bond as shown in Item 4 of the Declarations, but only up to an
amount not exceeding our Limit of Liability as shown in Item 3 of the
Declarations and only after the issuers of the Underlying Bond have paid or
have been held liable to pay the full amount of limits of insurance of the
Underlying Bond. Except for the terms, definitions, conditions and
exclusions of this bond, the coverage provided by this bond shall follow
the terms, definitions, conditions and exclusions of the Underlying Bond as
shown in Item 4 of the Declarations.
B. The Limit of Liability shown in Item 3 of the Declarations states the most
we will pay regardless of the number of Insureds, claims made or suits
brought or persons or organizations making claims or bringing suits.
II. Definition
A. Ultimate Net Loss
The term "Ultimate Net Loss" means the amount payable in
settlement of the loss of the Insured after making deductions for
all recoveries and for other valid and collectible bonds,
excepting however the Underlying Bond shown in Item 4 of the
Declarations.
III. Conditions
A. Maintenance of Limit of Liability of Underlying Bond
The limit of liability of the Underlying Bond shall be maintained
in full force and effect during the period of this bond. Under no
circumstances, including but not limited to bankruptcy,
insolvency or inability to pay at the issue of the Underlying
Bond, will we drop down and replace the Underlying Bond or assume
any obligation of the Underlying Bond.
If you fail to comply with this requirement, we will only be
liable to the same extent that we would have been had you fully
complied with this requirement.
B. Cancellation
1. You may cancel this bond. You must mail or deliver advance written
notice to us stating when the cancellation is to take
effect.
2. We may cancel this bond. If we cancel because of non-payment of
premium, we must mail or deliver to you not less than ten
(10) days advance written notice stating when the
cancellation is to take effect. If we cancel for any other
reason, we must mail or deliver to you not less than ninety
(90) days advance written notice stating when the
cancellation is to take effect. Mailing that notice to you
at your mailing address shown in Item 1 of the Declarations
will be sufficient to prove notice.
3. The bond period will end on the day and hour stated in the cancellation
notice.
4. If we cancel, earned premium will be calculated pro rata based on the time
this bond was in force.
5. If you cancel, earned premium will be calculated based on short rate
tables.
6. The first Named Insured in Item 1 of the Declarations shall act on behalf
of all other Insureds with respect to the giving and receiving of notice of
cancellation and the receipt of any refund that may become payable under
this bond.
7. Any of these provisions that conflict with a law that controls the
cancellation of the insurance in this bond is changed by this statement to
comply with that law.
C. Cancellation of Underlying Bond
This bond is canceled upon cancellation of the Underlying Bond.
You must promptly notify us of the cancellation of the Underlying
Bond. Such notice must be made when you send a notice of
cancellation of the Underlying Bond to, or when you receive such
notice from, the issuer of the Underlying Bond.
D. Changes to Underlying Bond
You must promptly notify us of any changes to the Underlying Bond
which are made after its inception date. Any changes made to the
Underlying Bond after its inception shall not affect the terms
and conditions of this bond, which shall continue to apply as
though no change had been made to the Underlying Bond.
E. Notice of Claim or Loss
You must notify us in writing as soon as practicable when you
become aware of any claim or loss under the Underlying Bond or
any bond which may give rise to any claim or loss under this bond.
F. Payment of Premium
The first Named Insured shown in Item 1 of the Declarations shall
be responsible for payment of all premiums when due.
In Witness Whereof, we have caused this bond to be executed and attested, but
this bond shall not be valid unless countersigned by one of our duly
authorized representatives, where required by law.
/s/ Elizabeth M. Tuck /s/ John Q. Doyle
-------------------- ---------------------------------
Secretary President
ENDORSEMENT# 1
This endorsement, effective 12:01 am October 1, 2006 forms a part of
policy number 673-83-04
issued to FEDERATED INVESTORS INC
by American Home Assurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
COVERAGE TERRITORY ENDORSEMENT
Payment of loss under this policy shall only be made in full compliance with
all United States of America economic or trade sanction laws or regulations,
including, but not limited to, sanctions, laws and regulations administered
and enforced by the U.S. Treasury Department's Office of Foreign Assets
Control ("OFAC").
/s/ John Q. Doyle
---------------------------
Authorized Representative
ENDORSEMENT# 2
This endorsement, effective 12:01 am October 1, 2006 forms a part of
policy number 673-83-04
issued to FEDERATED INVESTORS INC
by American Home Assurance Company
PENNSYLVANIA CANCELLATION/NONRENEWAL
AMENDATORY ENDORSEMENT
Wherever used in this endorsement: 1) "we", "us", "our", and "Insurer" mean
the insurance company which issued this policy; and 2) "you", "your", "named
Insured", "First Named Insured", and "Insured" mean the Named Corporation,
Named Organization, Named Sponsor, Named Insured, or Insured stated in the
Declarations page; and 3) "Other Insured(s)" means all other persons or
entities afforded coverage under the policy.
Cancellation/Nonrenewal
The cancellation provision of this policy is amended as follows:
Canceling a policy midterm is prohibited except if:
1) A condition material to insurability has changed substantially;
2) Loss of reinsurance or a substantial decrease in reinsurance has
occurred;
3) Material misrepresentation by the Insured;
4) Policy was obtained through fraud;
5) The Insured has failed to pay a premium when due;
6) The Insured has requested cancellation;
7) Material failure to comply with terms;
8) Other reasons that the commissioner may approve.
Notice Requirements for Midterm Cancellation and Nonrenewal
Notice shall be mailed by registered or first class mail by the Insurer
directly to the named Insured. Written notice will be forwarded directly to
the named Insured at least sixty (60) days in advance of the termination date
unless one or more of the following exists:
1) The Insured has made a material misrepresentation which affects the
insurability of the risk, in which case the prescribed written notice
of cancellation shall be forwarded directly to the named Insured at
least fifteen (15) days in advance of the effective date of
termination.
2) The Insured has failed to pay a premium when due, whether the premium
is payable directly to the Insurer or its agents or indirectly under a
premium finance plan or extension of credit, in which case the
prescribed written notice of cancellation shall be forwarded directly
to the Named Insured at least fifteen (15) days in advance of the
effective date of termination.
3) The policy was cancelled by the named Insured, in which case written
notice of cancellation shall not be required and coverage shall be
terminated on the date requested by the Insured. Nothing in these
three sections shall restrict the Insurer's right to rescind an
insurance policy ab initio upon discovery that the policy was obtained
through fraudulent statements, omissions or concealment of fact
material to the acceptance of the risk or to the hazard assumed by the
Insurer.
The notice shall be clearly labeled "Notice of Cancellation" or "Notice of
Nonrenewal". A midterm cancellation or nonrenewal notice shall state the
specific reasons for the cancellation or nonrenewal. The reasons shall
identify the condition or loss experience which caused the midterm
cancellation or nonrenewal. The notice shall provide sufficient information
or data for the Insured to correct the deficiency.
A midterm cancellation or nonrenewal notice shall state that, at the
Insured's request, the Insurer shall provide loss information to the Insured
for at least three years or the period of time during which the Insurer has
provided coverage to the Insured, whichever is less. Loss information on the
Insured shall consist of the following:
1) Information on closed claims, including date and description or
occurrence, and any amount of payments, if any;
2) Information on open claims, including date and description or
occurrence, amount of payment, if any, and amount or reserves, if any;
3) Information on notices of occurrence, including date and description
of occurrence and amount of reserves, if any.
The Insured's written request for loss information must be made within ten
(10) days of the Insured's receipt of the midterm cancellation or nonrenewal
notice. The Insurer shall have thirty (30) days from the date of receipt of
the Insured's written request to provide the requested information.
Notice of Increase in Premium
The Insurer shall provide not less than sixty (60) days notice of intent to
increase the Insured's renewal premium with thirty (30) days notice of an
estimate of the renewal premium. The notice of renewal premium increase will
be mail or delivered to the Insured's last known address. If notice is
mailed, it will be by registered or first class mail.
Return of Unearned Premium
Cancellation initiated by Insurer -- Unearned premium must be returned to the
Insured not later than ten (10) business days after the effective date of
termination.
Cancellation initiated by Insured -- Unearned premium must be returned to the
Insured not later than thirty (30) days after the effective date of
termination.
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS SHALL REMAIN UNCHANGED.
RIDER# 3
This rider, effective 12:01 am October 1, 2006 forms part of
bond number 673-83-04
issued to FEDERATED INVESTORS INC
by American Home Assurance Company
RELIANCE UPON OTHER CARRIER'S APPLICATION
In granting coverage under this policy, it is agreed that the Insurer has
relied upon the statements and representations contained in the below
referenced application (including materials submitted thereto and, if such
application is a renewal application, all such previous policy applications,
and their attachments and materials, for which this policy is a renewal or
succeeds in time) as being accurate and complete. It is further understood
and agreed that the Organization and the Insureds warrant and represent to
the Insurer that the statements and representations made in such application
were accurate on the date such representations and statement were so given
and that in connection therewith the Insureds hereby reaffirm each and every
statement made in our application to Chubb Group of Insurance Companies as
accurate as of October 1, 2005 as if it was made to the Insurer on such date.
All such statements and representations shall be deemed to be material to the
risk assumed by the Insurer, are the basis of this policy and are to be
considered as incorporated into this policy.
TYPE OF POLICY APPLICATION
Investment Company Asset protection Bond
CARRIER
Chubb Group of Insurance Companies
DATE SIGNED
June 21, 2006
ALL OTHER TERMS, CONDITIONS AND LIMITATIONS REMAIN UNCHANGED.
/s/ John Q. Doyle
--------------------------
Authorized Representative
RIDER #4
This rider, effective 12:01 am October 1, 2006 forms a part of
bond number 673-83-04
issued to FEDERATED INVESTORS INC
by American Home Assurance Company
DROP DOWN RIDER
It is agreed that:
1. It is a condition of the attached bond that the underlying bond(s)
shall be maintained in full effect in the amount of $15,000,000 during
the period of the attached bond except for any reduction in the
Aggregate Limit(s) of Liability contained therein solely by payment of
claims.
2. If, by reason of the payment of any claim or claims, by Underwriters
during the period of the attached bond which reduces the Aggregate
Limit(s) of Liability of the underlying bond, the attached bond shall
apply excess of the reduced Aggregate Limit(s) of Liability of the
underlying bond. In the event of the exhaustion of the underlying
limit(s), the attached bond shall continue in force as primary
insurance, and the Deductible set forth in the Schedule of the primary
bond shall apply to the attached bond.
3. However, in the event of any reinstatement of the underlying Aggregate
Limit(s) of Liability, the attached bond shall apply as excess of the
reinstated underlying Aggregate Limit(s) of Liability.
4. Nothing herein contained shall be held to vary, alter, waive or extend
any of the terms, limitations, conditions or agreements of the
attached bond other than as above stated.
/s/ John Q. Doyle
--------------------------
Authorized Representative
ENDORSEMENT# 5
This endorsement, effective 12:01 am October 1, 2006 forms a part of
policy number 673-83-04
issued to FEDERATED INVESTORS INC
by American Home Assurance Company
FORMS INDEX ENDORSEMENT
The contents of the Policy is comprised of the following forms:
FORM NUMBER EDITION FORM TITLE
DATE
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63674 10/95 Follow Form Bond - Dec
63675 10/95 Follow Form Bond - Guts
89644 07/05 COVERAGE TERRITORY ENDORSEMENT
(OFAC)
52165 11/96 PENNSYLVANIA AMENDATORY -.
CANCELLATION/NONRENEWAL
MNSCPR RELIANCE UPON OTHER CARRIER'S
APPLICATION
MNSCPR DROP DOWN RIDER
78859 10/01 FORMS INDEX ENDORSEMENT
/s/ John Q. Doyle
--------------------------
Authorized Representative
POLICYHOLDER NOTICE
Thank you for purchasing insurance from a member company of American
International Group, Inc. (AIG). The AIG member companies generally pay
compensation to brokers and independent agents, and may have paid
compensation in connection with your policy. You can review and obtain
information about the nature and range of compensation paid by AIG member
companies to brokers and independent agents in the United States by visiting
our website at www.aigproducercompensation.com or by calling AIG at
1-800-706-3102.
Resolutions of the Board of Directors
of the Federated Funds
as adopted unanimously at their
SPECIAL GENERAL SESSION MEETING
SEPTEMBER 25, 2006
and respectfully submitted by John W. McGonigle,
Secretary
FURTHER RESOLVED, that the Board hereby approves the
acquisition of the joint Fidelity Bond for the
period from October 1, 2006, through September
30, 2007, bonding the Officers, Directors,
Employees and Agents of the Funds against
larceny and embezzlement, in the aggregate
amount of $50,000,000;
FURTHER RESOLVED, that the Board hereby approves the
acquisition of the D&O/E&O policies for the
period from October 1, 2006, through September
30, 2007, in the aggregate amount of
$50,000,000;
FURTHER RESOLVED, that the Board hereby approves the Side A
Directors and Officers / Errors and Omissions
insurance coverage to insure the Funds'
directors and officers against unindemnified
claims in the amount of $50,000,000 for up to
the premium indicated to the Board for a period
commencing October 1, 2006 through September
30, 2007;
FURTHER RESOLVED, that the Funds' administrator, Federated
Administrative Services (the "Administrator"), is
hereby directed and authorized to bind coverage on
behalf of the Funds, their directors and officers,
for the combination of insurance coverages reviewed
with the full Board at its last regular meeting and
the current special meeting and up to the premium
indicated to the Board.